NE 

Hon. C. H. Cavness 'Opinion No. V-1443 

State Auditor 

Austin, .Texas Re: Applicability of H.B. 

753, Acts 52nd Legislature, 1951, establishing an accounting 

system for State prop-, 

erty, to such property 

as The Alamo, the French 

Embassy, Battleship TexDear Sir: as, and the like. 

Your request for an opinion Is as follows: 

"Your Interpretation or answers to the 

following questions In connection with House 

Bill 753 of the 52nd Legislature, an Act providing for the responsibility and accounting 

for State property, are desired not only by 

this office but also by the State Comptroller 

of Public Accounts and the State Board of 

Control. 

"1 . Are the following agencies subject 

to all the provisions of House Bill No. 7531 

A. Texas Hall of State, Dallas, 

Texas 

B. San Jacinto Museum, San Jaclnto 

Monument, Texas 

C. Battleship Texas, San Jacinto 

Monument, Texas 

D. The French Embassy, Austin, 

Texas 

E. The Alamo, San Antonio, Texas 

F. Museum, In the old Land Office 

Building here in the Capitol 

Grounds, operated by the Daughters of the Republic and the 

Daughters of the Confederacy 

"2 . In the event any of the above agencies 

are fount' to be subject to compliance with H.B. 
. 1 

Hon. C. H. Cavness, 

No. '(53, shall 

as referred to 

the records, reports,, and forms 

in Section 2, Sub-section (a) 

thereof be filed with the Comptroller by the 

agency in question, ‘or by the State Board of 

Control which serves,. In a supervisory capacity?” 

page 2 (V-1443) 

House Bill 753, Acts 52nd Leg., R.S. 1951, 

ch. 356, p. 602 (Article 6252-G, V.C,.S:), provides: 

. 

“Section 1. The Legislature finds that 

the State has a very substantial investment 

in real and personal property and that a substantial portion of the annual income of the , 

State is spent to acquire property for State 

purposes and to maintain State property. The 

purpose of this Act Is to establish ansystem 

for the orderly accounting for State property, 

to establish responsibility for the maintenance and care of State property and to prescribe the method of fixing pecuniary liability for the misuse of State property by officials and employees. The principles embodied 

in this Act dare now found in the common law 

and Statutes of this State; this Act restates 

those principles and prescribes the imple-,, 

menting procedures. The State has a real 

interest in its property and is entitled to 

having it managed and used in a sound and 

businesslike manner so that .the maximum benefits may be obtained from it and the State’s 

investment thereinprotected. 

“Sec. 2. The provisions of Articles 

10, 11, 12, 14, 22, and 23, Revised,Civil 

Statutes of Texas, 1925, and Acts, Fiftieth 

Legislature, 1947, Chapter 359,, on th.e interpretation of Statutes shall apply specifically to this Act. In addition to these 

standard definitions, In this Act, unless 

the context otherwise requires: 

“(a) ‘Agency’ shall include any State 

department, agency, board or other lnstrumentality, whethe,r it is financed in whole 

or in part by funds appropriated by the 

Legislature or not; bu,t shall not include 

local political subdivisions of the State, 

such as counties, cities, towns, school 

districts, flood control districts, irrigations districts, and the like. 
. . 

Hon. C. H. Cavness, page 3 (V-1443) 

"(b) 'Agency head' shall mean the fulltime State elected or appointed official or 

officials who administer the agency or the 

executive who has been appointed to administer 

the agency by a part-time State elected or 

appointed of,flclal or officials. 

"Sec. 3. All real and personal property 

belonging to the State shall be accounted for 

by the head of the agency which'has possession 

of the property. ,, 

"(a) The Comptroller of Public Accounts I 

shall administer the property accounting system 

established by this Act. The State, Auditor 

shall administer the property responsibility 

system established by this Act. The Comptrol- 

.ler shall issue such rules and regulations 

and manual of Instruction and prescribe such 

records, reports, and forms as he deems necessary to accomplish the objects of this Act 

subject to the approval of.the State Auditor. 

. . . 

"(b) The Comptroller shall maintain 

a complete and accurate set of centralized 

records of State property. However, where 

the Comptroller finds that an agency has 

demonstrated its ability and competence to 

maintain complete and accurate detailed records of the property it possesses without 

the detailed supervision by the Comptroller, 

the Comptroller may direct that the detailed 

records be keptat the principal office of 

such agency. Where the Comptroller issues I 

such order, the Comptroller shall keep only 

summary records of the property of such 

agency and the agency shall keep such detailed records as the Comptroller directs 

and furnish the Comptroller with such reports at such times as the Comptroller directs, 

"(c) Each agency head shall cause 

each Item of State property possessed by 

his agency to be marked so as to identify 

it. The agency head shall follow the lnstructlons iasued by the Comptroller in 

marking State property. 
Hon. C. H. Cavness, page 4 (V-1443) 

“Sec. 4. (a) All State agencies shall 

comply with the provisions oft this Act and 

shall keep the property~records required by 

this Act. .' 

"(b) All realnroperty owned by the 

State shall be accounted for by the agency 

which possesses the property. ,:Y; ,Y. 

"(c) All personal property-owned by 

the State shall be accounted for by the 

agency which possesses the property. The 

Comptroller shall by regulation define what 

is meant by personal property for the purposes of this Act. . . , 

“Sec. 5. Each agency head is responsible for the proper custody, care, malntenance, and safekeeping of the State property 

possessed by his agency. . . . 

"(e) Each agency shall make a complete 

physical inventory of all property in its 

possession once a year. The inventory shall 

be taken on the date prescribed for the agency by the Comptroller. 

"(f) The agency head shall forward a 

signed statement describing the method by 

which the .inventory was verified, along with 

a copy of such inventory within forty-five 

(45) days after the inventory date for the 

agency. 

"(g) The Comptroller shall sub&vise 

the property accounting records of each agency so that the records accurately reflect 

the property currently possessed by the agenCY. The Comptroller shall prescribe the 

methods whereby items of property are deleted fr?m the property records of the agency. 

. . . 

It is noted ,from the above quoted provisions 

that House Bill 753 is applicable to all property, real 

and personal, owned by the State; and to the "agency" 

which has possession of such property. "Agency is 

defined by the act as "any State department, agency, 

board or other instrumentality whether it is financed 
. . 

Hon. C. H. Cavness, page 5 (V-1443) 

in wl~ole or in p:irt by funds appropriated hy the 

Leglslxture or not” with exceptions not applicable 

to your request. Therefore, two questions must be 

determined in regard to each property listed in your 

request. First, is the property owned by the State? 

Second, if the property is owned by the State, what 

agency, as defined by H.B. 753, has possession Of 

the property? We will discuss these questions as 

they regard the individual property under consideration. 

1. The Alamo Property. S.H.B. 1, Acts 

29th Leg., R .S. 1905, ch. 7, p. 7, provides In part: 

“That the Governor of the State of Texas 

be and is hereby authorized to purchase at a 

price not to exceed Sixty-five Thousand Dollars ($65,000), and to procure to be executed to the State of Texas by the owners of the 

property herelna’fter mentioned a good and 

sufficient conveyance in fee of all the land 

in the City of San Antonio, Texas, known as 

the Hugo & Smeltzer Company property, formerly a part of the old Alamo Mission and adjolnlng the Plamo Church property now owned by 

the State: . . . 

“Sec. 3. Upon the receipt of the title 

to said land, the Governor shall deliver the 

property thus acquired, together with the 

Alamo Church property already owned by the 

“Sec. 3. Upon the receipt of the title 

to said land, the Governor shall deliver the 

property thus acquired, together with the 

Alamo Church property already owned by the 

State, to the custody and care of the Daughters of the Republic of Texas, to be malntalned by them in good 

without 

order and repair, 

charge to the State, as a sacred 

memorial to the heroes who immolated themselves upon that hallowed ground; and & 

the Daughters of the Republic of Texas to 

be maintained or remodeled upon plans adopted by the Daughters of the Republic of Texas, and approved by the Governor of Texas; 

provided that no changes or alterations 

shall be made in the Alamo Church proper, 

as It now stands, except such as are absolutely necessary for its preservatipn. All 

of said property being subject to future 

legislation by the Legislature of the State 

of Texas. ” 

leglslation’by ihe Leglslacure of the State 

of Texas. ” 
. 

Hon. C. H. Cavness, page 6 (V-1443) 

Pursuant to the above quoted provisions 

the Alamo property as it now exists was acquired 

by the State and custody of the property placed 

in the Daughters of the Republic. In construing its 

provisions it was held in Conley v. Daughters of 

the Republic, 106 Tex. 80, 156 S.W. 197.(1913), that 

"the state, acting by its Legislature, had the authority to acquire title to the Alamo property and 

to place that property in the custody of the corporation, the Daughters of the Republic." The court 

also stated: 

"We are of the opinion that by the acceptance of the terms of the statute the corporation became a trustee for the State." 

155 S.W. at 200. 

Since the Daughters of the Republic is a 

trustee for the State, it is an "instrumentality" which 

has possession of state property, and it is our opinion 

that it constitutes an agency for the State within the 

meaning of H.B.' 753. Therefore, the Daughters of the 

Republic, being the agency in possession of the Alamo 

property, should keep the property records required 

by the act, account for all property owned by the State 

In its possession, and file such reports as directed 

by the Comptrolle:.-. Letter Opinion to Honorable Hall H. 

Logan, Chairman of State Board of Control, dated December 13, 1949. 

2. The French Embassy Property. H.B. 728, 

Acts 49th Leg., R.S. 1945, ch. 286, p. 455 (Art. 687b, 

V.C.S.) provides: 

"Section 1. There is hereby appropriated 

all moneys now in the Texas Centennial Commission funds If and when available to apply 

on the purchase of the French Embassy building and all properties therein. 

"Sec. 2. Said property to consist of 

Embassy building and two and one-half (24) 

acres out of the Southeast part of Outlot 

No. 1, in Division B, City of Austin, Texas, 

facing easterly on San Marcos Street, with 

line commencing at the intersection of San 

Marcos and Ninth Streets and running southerly with the West line of San Marcos Street 

to an alley between Seventh and Ninth Streets. 
Honk. C. H. Cavness, page 7 (V-1443) 

main In custody of the’Bo&d bf Control.” 

Pursuant to the foregoing provisions the 

State Board of.C.ontrol was authorized to purchase 

the French Embassy property for the State. Att’y 

Oen. Op. V-206 (1947). As soon as title was acquired by the State, custody and possebsion of the 

French Embassy,property was placed in the Daughters 

of the Republic in accordance with the provision of 

H.B. 728 of the 49th Legislature. Therefore, our 

discussion relative to the Alamo property is applicable to the French Embassy property. 

3. Battleship Texas. The Battleship Texas wa8 acquired by the State by gift from the United 

States Oovernment. 

Article 6145-2, V.C.S., created the Battleship Texak Commission for the purpose of accepting 

the gift and maintaining the property as a permanent 

memorial. Section 3 provides: 

“The duties of the Commission shall be: 

To provide a proper berth for the Battleship 

‘Texas,’ to select a location add¢ to, 

or on, the San Jaclnto Battlegrounds for 

such. b,pptti; ‘to .+eady th&Ges&Xi’fo,r visita-’ 

tion by ,the, publicj to ascertain, and institute a proper charge for admission to said 

vesselj to maintain and operate said vessel 

as a permanent memorial and exhibition, and 

to allocatq,the money herein appropriated 

as may be nkceeeary for’the fulfillment of 

the dutlee contained herein. Said Commission is further authorized to perfornl all 

other duties in addltion.,Uo thoae apecifitally named above oi- mentioned below which 

are necessary to carry out the provisions 

and purposes of this Acti The aforesaid 
Hon. C. H. Cavness, page 8 (V-1443) 

Commission shall be and hereby is authorized 

to accept gifts or donations for the purposes of this Act." 

In a letter opinion to Mr. Gordon H. Lloyd, 

Executive Secretary of the Employees Retirement System, 

dated April 11, 1949, this office held that employees 

of the Battleship Texas Commission were eligible to 

become members of the State Employees 'Retirement System 

since the Commission Is a "Department" of the State 

Government within the meaning of Article 6228a, V.C.S. 

In view of the foregoing, it is our oFin: 

ion that the Battleship Texas Commission Is an agency" of the State within the meaning of H.B. 753. As 

it has possession of the Battleship Texas,*it should 

keep the property records required by the act. 

4. San Jacinto Museum Property. "The San 

Jaclnto State Park', composed of the lands owned and 

acquired by the State called the San Jaclnto battlefield, was established in 1907 by the Legislature and 

placed in the custody of the State Superintendent of 

Public Buildings and Grounds (now State Board of Control) and the San Jaclnto State Park Commissioners. 

S.B..18, Acts 30th Leg., R.S. 1907, ch. 48, p. 104. 

In 1939, the San Jacinto Memorial Tower was 

constructed and the Legislature then authorized the 

State Board of Control to contract with the San Jacinto 

Museum of History Association to the end that the association, should assume the care, custody and control 

of the Sawn Jacinto Memorial Tower. S.C..R. 21 of the 

46th Leg., R.S. 1939, P. 733. 

Attorney General's Opinion O-951 (1939) upheld the validity of a contract placing the care, 

custody, and control of the San Jacinto Memorial Tower 

in the San {aclnto Museum of History Association, 

stating: 

1, 

. . * The contract does not violate 

Article 3, Section 51 of our Constitution, 

nor, so far as we have observed, any other 

portion or provision of the Constitution 

of Texas. The authority of the State of 

Texas to enterinto contracts of this character was upheld In the case of Conley vs. 

Daughters of the Republic;156 S.W. 197. 

. . . 
Hon. C. H. Cavness, page 9 (v-14431, 

,I 

. . . By Section 6 of the con-~ 

tract, It Is contemplated that the corporation, as trustee for the State, shall use 

the money collected from operating the 

elevator to defray the expenses of operating the elevator, paying jahltors and watchmen, and for maintenance and policing of 

the building, and for complylng~HSt~h the 

general terms of the resolution’ bf the ‘Legislature In respect to insurance, with the 

balance of said moneys, as well as the balance of the net profits remaining after the 

payment of such expenses, to be used on the 

grounds of. the San Jaclnto State Park under 

the direction of the Board of Control. . . .’ 

Since the San Jacinto Museum of History Association is trustee for the State, It is our opinion 

that it constitutes an “agency” of the State within 

the meaning of H.B. 753. Since it is in possession 

of the San Jacinto Memorial Tower, the San Jaclnto 

Museum of History Association should keep the property 

record% required by H.B. 753, account for all State 

property In its possession as required by the act, 

and file such reports as directed by the Comptroller. 

Old Land Office Building Property. H.B. 

831, Acts 24th Leg., R.S. 1915, ch. 208, ‘p. 486, provides in part: 

: 

“That as soon as the building located 

near the Capitol and known as the General 

$ndT;:;;ce Building, in Austin, Travis counis vacated the same is hereby set 

aside for’the uses and purposes of the Daughters of the Republic and the Texas Division 

of the Daughters of the Confederacy; and the 

said Daughters of the Republic and the Texas 

,Divlsion of the Daughters of the Confederacy 

.be and the same .are hereby authorized to 

take full charge of said b,uildlng and use 

the same conjointly as they see proper; provided, however, that the Daughters of the 

Republic shall occupy the upper floor of said 

building and the Texas Division of the Daul’hters of the Confederacy shall occupy the lowor 

floor of said building: 

“In order that the said building known 
Hon. CI H. Cavness, page 10 (V-1443) 

as the General Land Office, and now occupied 

as the General Land Office, In Austin, Travis 

county, Texas be properly repaired and remodeled, after the same has been vacated 

as the General Land Office, the sum of ten 

thousand ($lO,OOO.OO) dollars or so much 

thereof as may be necessary, is hereby appropriated out of any fund not otherwise 

appropriated, to be used In repairing and 

remodeling said building, the same to be 

expended under the ;dlrection of the Superintendent of Public’ Buildings and Grounds.” 

The Legislature by the above quoted provlsions placed the custody and control of the “Old Land 

Office Building” in the Daughters of the Republic and 

the Daughters of the Confederacy, thereby,making them 

. 

trustees for the State. Conley v. Daughters of the 

Re ublic, supra. 

-TAiz-T 

Therefore, our discussion relative 

lamo property and the French Embassy property 

is applicable to the “Old Land Office Building.” 

6. Texas Hall of State property. S.B. 22, 

Acts 43rd Leg., 2nd C.S., 1934, ch. 69, p. 164, created 

the Texas Centennial Commlasion, granting it “plenary 

power to do any and all things In Its judgment neceaaary to carry out the purposes of the organization,’ 

to-wit, the holding of the Texas Centennial Celebration 

or Celebrations in 1936. Section 14 of the act, however, provided: 

“All lands and bulldings purchased by 

Legislative appropriations and all net profits that may be acquired by said Commission 

shall be turned over to the State of Texas 

within two years from the close of the Texas 

Centennial celebration for such disposition 

as the Legislature may then determine after 

a final report to the Legislature by the 

Commlssion shall have been filed with the 

Secretary of State, and the Commisslon shall 

then be discharged by legislative action, 

and the corporation dissolved.” 

Section 11 of H.B. 11, Acts 44th Leg., R.S. 

,1935, ch. 174, p. 427, pFovidea: 

"All permanent buildings to be erected 

,ln the City of Dallas for ,the Central 
. ., I 

hereby 

ite of 

the Cerlt;etM.al Central kpositlon in the 

City of Dallas in a&olBdance with plans 

and spec i~t’ictit! ens a~p1~1~oved by’ the Texas 

Centennial Cetitr,:ri Expositibn, and on land 

the title to wht!:), shall be in the State 

of Texas. The Texas CentetYnial Oentral 

Exposition shall have the right to, possessiop of, and the free use and occupancy 

of+ the said buildings for the duration of 

ttie Central Exposition; provided, however, 

that the aforesaid buildings and the land on 

which they will be situated are hereby leased 

by the State of Texas to the City of Dallas 

for a period of twenty (20) years, commencing at the termination of the Central Exposition, at a rental of One Hundred Dollars 

($100) per year for said’ buildings, payable 

annually in advance. , . ,’ 

On October 15, 1935, the City of Dallas iasued a warranty deed on a tract of land situated In 

Dallas to the State of Texas upon which the Texas Hall 

of State was built. Vol. 1920, page 397 of the ~Deed 

Records of Dallas County, Texas. 

On February 25, 1938, pursuant to the provisions of H.B. 11 of the 44th Legislature, the State 

of Texas acting’through the Board of-Control leased 

the Texas Hall of State to the City of Dallas for a 

period of twenty year,?,. This lease contract provided 

in part: 

‘“The City of Dallas covenant’s z&d agrees 

that during the term of this lease, aaid’6Uilkii 

ing, furnishings, and equipment’ sh~all .be us’ed’ 

only foe public purposes; inclkding annual 

State expositions; and that such building 

shall not, be maintained or operated for purposes of private profit; that there shall be 

no charge imposed upon any exhibitor ifi any 

of said buildings for exhibit space, and 

that there shall be no admission charge 

for entrance into such building.” 

The City of Dallas is merely a lessee of 

the State by virtue of H.B. 11 of the 44th Leglilature and not an agent or trustee. for the State. Therefore, it Is our opinion that M&State Board of Control 
Hon. C; H. Cavness, page 12 (V-1443) 

is the agent of the State in possession of the Texas 

Hall of State property and is required to keep the 

property records, account for all property owned by 

the State In its possession, and file such reports 

as direc’ted by the Comptroller. 

SUMMARY 

House Bill 

ch. 356, p. 602 7 

53, Acts 52nd Leg., R.S. 1951, 

Article 6252-6, V.C.S.), establishing an accounting system for state property 

is applicable to the Texas Hall of State, San 

Jacinto Memorial Tower, Battleship Texas, 

French Embassy, Alamo, and the Old Land Of- ’ 

fice Building, all of which property is owned 

by the State of Texas. The groups or*assoclatlons in possession of these state properties are “agencies” of the State as that 

term Is defined In H.B. 753, and are, therefore, required to keep the property records, 

account for all State property in their POSsession, and file such reports as directed 

by the Comptroller of Public Accounts, as 

provided in H.B. 753. 

Yours very truly, 

APPROVED: 

J. C. Davis, Jr. 

County Affairs Division 

PRICE DANIEL 

Attorney General 

E. Jacobson ’ 

Reviewing Assistant 

Charles D. Mathews 

First Assistant 

John Reeves 

Assistant 

JR:lllh 

. .